Overview Dividends

(RTO) Rentokil Initial - Ratings and Ratios

Exchange: NYSE • Country: United Kingdom • Currency: USD • Type: Common Stock • ISIN: US7601251041

Pest Control, Hygiene Services, Garment Supply, Specialist Cleaning

Risk via 10d forecast
Volatility	33.7%
Value at Risk 5%th	48.4%
Relative Tail Risk	-12.75%

Reward TTM
Sharpe Ratio	0.21
Alpha	-5.37

Character TTM
Hurst Exponent	0.428
Beta	0.777
Beta Downside	0.812

Drawdowns 3y
Max DD	49.81%
Mean DD	25.85%
Median DD	32.24%

Description: RTO Rentokil Initial October 31, 2025

Rentokil Initial plc (NYSE:RTO) operates a globally diversified, route-based business delivering pest-control, hygiene, laundry, and specialist cleaning services across North America, Europe, the UK, Asia, the Middle East, North Africa, Turkey, and the Pacific. Its core offerings include rodent and insect management, a suite of hand-sanitising and air-quality products, commercial garment laundering, and high-value cleaning contracts such as graffiti removal, trauma cleaning, and flood or fire damage remediation.

Key recent metrics: FY 2023 reported revenue of £2.3 bn with an adjusted EBITDA margin of roughly 12%, while the hygiene segment grew ~6% YoY, driven by heightened corporate demand for touch-free dispensers and air-purification solutions. The business is sensitive to macro-economic factors such as inflation-linked contract escalators and labor market tightness, which can compress margins despite the sector’s defensive nature and steady demand for health-related services.

If you want a deeper, data-rich view of RTO’s valuation dynamics and scenario analysis, the ValueRay platform offers a free, interactive model that can help you test assumptions and uncover hidden upside.

RTO Stock Overview

Market Cap in USD	13,897m
Sub-Industry	Environmental & Facilities Services
IPO / Inception	2007-07-13
Return 12m vs S&P 500	-8.61%
Analyst Rating	4.0 of 5

RTO Dividends

Metric	Value
Dividend Yield	2.50%
Yield on Cost 5y	2.05%
Yield CAGR 5y	27.92%
Payout Consistency	83.0%
Payout Ratio	4.7%

RTO Growth Ratios

Metric	Value
CAGR 3y	-4.66%
CAGR/Max DD Calmar Ratio	-0.09
CAGR/Mean DD Pain Ratio	-0.18
Current Volume	1084k
Average Volume	1039k

Piotroski VR‑10 (Strict, 0-10) 7.5

Net Income (691.0m TTM) > 0 and > 6% of Revenue (6% = 690.2m TTM)

FCFTA 0.08 (>2.0%) and ΔFCFTA 3.05pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 3.30% (prev 5.13%; Δ -1.83pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.11 (>3.0%) and CFO 1.56b > Net Income 691.0m (YES >=105%, WARN >=100%)

Net Debt (4.35b) to EBITDA (2.13b) ratio: 2.04 <= 3.0 (WARN <= 3.5)

Current Ratio 1.12 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (506.2m) change vs 12m ago 0.16% (target <= -2.0% for YES)

Gross Margin 45.78% (prev 22.33%; Δ 23.44pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 91.21% (prev 50.51%; Δ 40.70pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 3.79 (EBITDA TTM 2.13b / Interest Expense TTM 386.0m) >= 6 (WARN >= 3)

Altman Z'' 2.99

(A) 0.03 = (Total Current Assets 3.65b - Total Current Liabilities 3.27b) / Total Assets 14.23b

(B) 0.43 = Retained Earnings (Balance) 6.18b / Total Assets 14.23b

(D) 0.59 = Book Value of Equity 5.25b / Total Liabilities 8.97b

Total Rating: 2.99 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 73.41

1. Piotroski 7.50pt = 2.50

2. FCF Yield 7.83% = 3.92

3. FCF Margin 10.15% = 2.54

4. Debt/Equity 1.15 = 1.88

5. Debt/Ebitda 2.04 = -0.08

6. ROIC - WACC (= 6.45)% = 8.07

7. RoE 15.57% = 1.30

8. Rev. Trend 80.05% = 6.00

9. EPS Trend -54.10% = -2.71

What is the price of RTO shares?

As of November 19, 2025, the stock is trading at USD 26.25 with a total of 1,083,959 shares traded.
Over the past week, the price has changed by -1.80%, over one month by -2.02%, over three months by +8.70% and over the past year by +3.81%.

Is RTO a buy, sell or hold?

Rentokil Initial has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy RTO.

Strong Buy: 1
Buy: 2
Hold: 1
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the RTO price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	29.7	13%
Analysts Target Price	29.7	13%
ValueRay Target Price	28.1	7%

RTO Fundamental Data Overview November 06, 2025

Market Cap GBP = 10.56b (13.90b USD * 0.76 USD.GBP)
P/E Trailing = 43.5079
P/E Forward = 18.9036
P/S = 2.5113
P/B = 2.4798
P/EG = 1.6303
Beta = 0.48
Revenue TTM = 11.50b GBP
EBIT TTM = 1.46b GBP
EBITDA TTM = 2.13b GBP
Long Term Debt = 4.18b GBP (from longTermDebt, last quarter)
Short Term Debt = 1.48b GBP (from shortTermDebt, last quarter)
Debt = 6.04b GBP (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.35b GBP (from netDebt column, last quarter)
Enterprise Value = 14.91b GBP (10.56b + Debt 6.04b - CCE 1.69b)
Interest Coverage Ratio = 3.79 (Ebit TTM 1.46b / Interest Expense TTM 386.0m)
FCF Yield = 7.83% (FCF TTM 1.17b / Enterprise Value 14.91b)
FCF Margin = 10.15% (FCF TTM 1.17b / Revenue TTM 11.50b)
Net Margin = 6.01% (Net Income TTM 691.0m / Revenue TTM 11.50b)
Gross Margin = 45.78% ((Revenue TTM 11.50b - Cost of Revenue TTM 6.24b) / Revenue TTM)
Gross Margin QoQ = 13.53% (prev 12.49%)
Tobins Q-Ratio = 1.05 (Enterprise Value 14.91b / Total Assets 14.23b)
Interest Expense / Debt = 1.54% (Interest Expense 93.0m / Debt 6.04b)
Taxrate = 24.07% (52.0m / 216.0m)
NOPAT = 1.11b (EBIT 1.46b * (1 - 24.07%))
Current Ratio = 1.12 (Total Current Assets 3.65b / Total Current Liabilities 3.27b)
Debt / Equity = 1.15 (Debt 6.04b / totalStockholderEquity, last quarter 5.27b)
Debt / EBITDA = 2.04 (Net Debt 4.35b / EBITDA 2.13b)
Debt / FCF = 3.73 (Net Debt 4.35b / FCF TTM 1.17b)
Total Stockholder Equity = 4.44b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.85% (Net Income 691.0m / Total Assets 14.23b)
RoE = 15.57% (Net Income TTM 691.0m / Total Stockholder Equity 4.44b)
RoCE = 16.99% (EBIT 1.46b / Capital Employed (Equity 4.44b + L.T.Debt 4.18b))
RoIC = 12.53% (NOPAT 1.11b / Invested Capital 8.87b)
WACC = 6.07% (E(10.56b)/V(16.60b) * Re(8.88%) + D(6.04b)/V(16.60b) * Rd(1.54%) * (1-Tc(0.24)))
Discount Rate = 8.88% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.08%
[DCF Debug] Terminal Value 78.77% ; FCFE base≈927.4m ; Y1≈1.14b ; Y5≈1.95b
Fair Price DCF = 56.40 (DCF Value 28.37b / Shares Outstanding 502.9m; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: -54.10 | EPS CAGR: -87.85% | SUE: 0.0 | # QB: 0
Revenue Correlation: 80.05 | Revenue CAGR: 96.11% | SUE: N/A | # QB: 0

Additional Sources for RTO Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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Fund Manager Positions: Dataroma | Stockcircle